The morning news. [volume] (Savannah, Ga.) 1887-1900, 1887-09-24
CAPITALS ABSORPTION.
EVERY BRANCH OF TRADE FEELS
THE EFFECTS.

Government Bond Purchases, How
ever, Create Feeling of Hopeful
ness-Only Per Cent. Added to the
Circulation by the Purchases
Causes of the Little Pinch.
New York, Sept. 23-R. G. Dun & Co.'s
review of trade for the week says:
The sudden change in the governments
policy brings hopefulness to the local money
market. Listening to anxious bankers and
operators, and unable to keep down the
surplus through weekly offers of Al per
cents, the Treasury proposed late We1nes-
day night to take $4,000, 900 OF the or AZ
per cent bonds at named prices and g., 10000
were taken on Thursday. The effect on the
sentiment of the street was exceedingly
stimulating possibly, indeed, too much
may be expected. The Treasury purchases
cannot entirely remove the consequences OF
short crop, harmful speculation, over-hasty
development, or the change of active into
fixed capital. Wall street looks for tho
whole OF 3l4, 900, 900, but large part of the
bonds will come from the interior and tho
money will go thither.
WILL BE QUICKLY ABSORBED.
Much of it is wanted TO meet commit
ments on new enterprises and may be abb
sorbed. The speculative advance in prices,
which au once began, will make more money
need to carry the same stocks or products.
The country is now using outside the
Treasury 81 ,323, 900 600 of various kinds OF
money, and clear addition of
per cent would not go very far. But the
disbursement will not be wholly an addition
of currency to the sum in use, because the
government receipts exceed the regular ex-
penditures by $4,000, 600 or more each week.
The best of il is that the Treasury has done,
and so may be expected to do, whatever it
can TO avoid disturbance. While money Is
instantly made easier in Wall street, it
grows tighter throughout the interior
EFFECTS OF ABSORPTION.
The effects of the absorption of capital in
building and rapid development are each
week felt more clearly. The change of tenn
per here IS, of course, not yet felt at dis
tant points. During the past week the
Treasury has paid out 81, 500, 900 more than
it has taken in, so that its payments exceed
its receipts for the month by 81 100000.
Gold continues to arrive from Europe but
no more is shipped.
The merchandise exports from New York
for three weeks are q per cent above last
year, against an increase of 10J@ per cent.
in imports here. II is still fact that gold
comes only for investment or speculation 80
that disbursement might turn the tide.
IN THE IRON TRADE.
Some depression results from recent
features in the iron trade, and from con-
tinued heavy importations, and while the
best brands of pig are firm, the heavy sur
| plus tendss to weaken other grades. One
large order for rails has been cancelled.
! Boot and shoe sales are not up to recent
expectations, travellers reporting orders con-
| tracted by the monetary pressure. Leather
| and hides are consequently dull, and checks
the late premise of greater activity in wool.
| Dry goods experience some reaction from
the unusual activity of recent weeks, but
| prices are firmly held The tendency for
the moment is to advance prices in all mar
kets on account of the Treasury disburse-
ments, but the shortness Of the crops and
the absorption Of capital into fixed forms
must still have some influence.
The business failures occurring through
out the country during last week number
for the United States 1856, and for Canada
%, total of 1873, against lSS last week, and
ia the week previous.